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Chapter 14

Chapter 14. Work Sheet for a Merchandising Business. Terms that you need to know…. Inventory – simply the amount of goods that we have on our shelves and in our warehouse.

julie-rich
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Chapter 14

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  1. Chapter 14 Work Sheet for a Merchandising Business

  2. Terms that you need to know….. • Inventory – simply the amount of goods that we have on our shelves and in our warehouse. • Worksheet – the financial form that provides us with a way to make sure or ledger is in balance, net income, and helps us prepare our adjustments.

  3. More terms • Adjustments – the process in which we bring our accounts up to date. • Merchandise Inventory – the amount of goods we have to sell to our customers (Asset Account)

  4. Steps to completing the worksheet • Take all of the numbers from the general ledger and place them with the accounts that correspond with the accounts on the worksheet.

  5. Top half of the Worksheet

  6. Bottom half of the worksheet

  7. Steps to completing the worksheet • Take all of the numbers from the general ledger and place them with the accounts that correspond with the accounts on the worksheet. • Total the columns on the trial balance.

  8. Supplies-Office Supplies-store Prepaid Insurance Merchandise Inventory Supplies Expense-office Supplies Expense- Store Insurance Expense Income Summary Adjustment

  9. Supplies-Office Ending Bal in Warehouse Adjustment Supplies-Office Beg Bal. in ledger Credit for $2000 $6480 $4480 Since we Credit we must debit Somewhere else $2000

  10. Trial Balance Adjustments $2000

  11. Steps to completing the worksheet • Take all of the numbers from the general ledger and place them with the accounts that correspond with the accounts on the worksheet. • Total the columns on the trial balance. • Make the adjustments • Total the adjustments column so that we know they are in balance

  12. Move all of the information to the appropriate columns • Remember that the income summary is the line that we use to help us as a guide. • Everything above goes on the balance sheet • Everything below goes on the income statement columns

  13. Move all of the information to the appropriate columns • Remember that the income summary is the line that we use to help us as a guide. • Everything above goes on the balance sheet • Everything below goes on the income statement columns • Total the columns and determine net loss or gain.

  14. Debit Credit Debit Credit 69615.85 69615.85 423120 423120 360532.68 360532.68

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